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Consumers most likely to shop around for insurance ABI survey shows

Consumers are much more likely to shop around for insurance than for a new bank account, mortgage, phone contract or energy supplier, a survey has revealed.

People are three times more likely to shop around extensively for motor insurance than a current account, and four times more than they are for a new mobile phone contract, the Populus survey of over 2,000 people shows.

Over three quarters (77%) of customers buying motor insurance shopped around, compared to two thirds (61%) buying a mobile phone contract.

The survey shows that consumers are actively engaged when buying insurance products and recognise the value of shopping around. With numerous insurance providers in the market, customers can take advantage of a healthy and competitive market to find the right product and price for them.

Those people surveyed who considered 5 or more alternative suppliers when buying an insurance product included:

  • 36% for motor insurance.
  • 30% for home buildings or contents insurance.
  • 28% for travel insurance.

This is much higher than buying other personal finance products. Those surveyed who looked at 5 or more alternative providers was only:

  • 9% buying a new mobile phone contract.
  • 12% looking for a current account.
  • 16% buying a mortgage or personal loan.

People shop around for insurance products using a variety of different channels. Based on ABI member data:

  • 36% buy directly from a provider.
  • 36% use a broker or independent adviser.
  • 11% purchase through banks and building societies.
  • 11% buy from utilities, retailers and affinity groups.
  • 6% use company agents and other intermediaries.

James Dalton, Director of General Insurance Policy at the ABI, said:

James Dalton"This survey proves what a competitive market general insurance has become. It’s great to see that consumers are carefully considering their options and are looking around for the best deal when buying cover. With motor insurance costing an average of £379, and home and contents costing an average £290, the insurance market is highly competitive, so it’s important that consumers understand the importance of shopping around.

"With more than three quarters of people shopping around when buying motor, home, and travel insurance, consumers are taking advantage of the wide variety of ways to find the best deal to meet their needs."

Last updated 01/07/2016